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Vol. 80/No. 17 May 2, 2016
Teamsters hold DC rally to demand halt to pension cuts
BY JAMES HARRIS
WASHINGTON — Three thousand Teamsters and their supporters rallied at
the U.S. Capitol here April 14 protesting drastic cuts to their
pensions. The retirement benefits of some 400,000 workers covered by the
Central States Pension Fund are threatened. Many of these workers may
see their benefits reduced by one half or more on July 1.
A lot of the protesters were in their 60s or 70s, some using walkers or
canes. They included workers already receiving benefits and others who
are about to be eligible. They demanded the Treasury Department block
the gutting of their pensions, which they learned about through form
letters sent out by fund administrators last October. Many carried these
letters with them.
“This is not what I expected after 36 years of working on the road,”
said Maxwell Cole, a truck driver from Kentucky. His pension is set to
fall from $2,200 a month to $1,200. “I don’t see how my wife and I can
make it.”
The funds that were supposed to guarantee retirees’ payments for the
rest of their lives were gambled away by money managers assigned to
administer them. The Teamsters Central States fund lost 42 percent of
its assets as the stock market dropped during 2008 and 2009.
A provision in a 1,600-page federal spending bill adopted in December
2014 allows trustees of multiemployer retirement plans to slash benefits
if the fund is projected to run out of money within 15 years and its
failure is likely to overwhelm the federal Pension Benefit Guaranty
Corporation insurance.
Administrators of plans like the Central States Pension Fund can apply
to the Treasury Department for permission to cut retiree benefits
temporarily or permanently. In this case, the Treasury Department has
until May 7 to decide whether to approve the cuts. Recipients are also
supposed to be able to vote on them, in a rigged process that counts
anyone who does not submit a ballot as a vote in favor.
Related articles:
Verizon strikers: Time to say no to concessions!
Stand in solidarity with 40,000 strikers
On the Picket Line
Protests across country demand $15/hour and union
Labor actions rise in China as bosses slash jobs, wages
Fight for pensions for entire working class
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